Over the next year, indoor cannabis cultivation in Hawaii most likely will
increase, while outdoor cultivation will continue to trend downward. Growing
demand for high-potency marijuana and intensified enforcement efforts on the
part of law enforcement will quite likely drive more outdoor cannabis cultivators
indoors. Moreover, the enhanced security and controlled growing environment
afforded by indoor grow operations will prove to be an added incentive for growers
to establish indoor operations.

The threat posed to Hawaii by the trafficking and abuse of ice methamphetamine
will not diminish in the near term. Decreased availability in the first half
of 2006 led to a simultaneous price spike. Availability has returned to previous
levels; however, prices remain slightly higher than presupply shortage levels.
Prices will likely remain at this level.